First Day of Bankruptcy Reform - Bankruptcy Attorneys Receive a Favorable Ruling
I've taken the trouble to post this ruling, delivered by a Judge in the Southern District of Georgia on the matter of classifying "attorneys" as "debt relief agencies".
I urge you, as bankruptcy attorneys, to read this carefully. And although I see this as a "win" and as a favorable sign, I suggest remaining cautious with your practice for the time being as we watch new developments unfold.
The challenges for the attorneys, outlined in the 4th page of the document: "...a new layer of regulation [would] be superimposed on the bar of this Court, and evaluation of new risks and liabilities will preoccupy them as they strive to represent their clients, comply with existing state regulation of their practice, learn the new...mandates of this new law, and adhere to the separate professional standards applicable to members of the Bar of this Court...That is a burden which should not be borne by the Bar needlessly..."
The essence of the ruling: "Are members of the Bar of this Court 'debt reflief agencies?' Exercising the grant of authority of 11 U.S.C. §§ 526(c)'and 105 and the inherent power of this Court, I declare that they are not."
Read the complete ruling: Download file
